Big Sky Times

The National Federation of Independent Business (NFIB) released its latest Small Business Economic Trends report, known as the Optimism Index. The report shows that the index remains below its 50-year average for the 32nd consecutive time.

Ronda Wiggers, state director for NFIB in Montana, commented on the situation: “I give credit to our governor and state lawmakers for doing all they can to foster a positive small business environment. However, it is frustrating for small business owners that Congress has not passed the Main Street Tax Certainty Act that would keep the 20% Small Business Deduction from expiring next year. It is difficult for a business to plan and grow with that amount of uncertainty in their future tax bills.”

Bill Dunkelberg, NFIB Chief Economist, stated: “The mood on Main Street worsened in August, despite last month’s gains. Historically high inflation remains the top issue for owners as sales expectations plummet and cost pressures increase. Uncertainty among small business owners continues to rise as expectations for future business conditions worsen.”

Key points from the report include a net negative 37% frequency of reports on positive profit trends, marking a seven-point drop from July and reaching its lowest since March 2010. Inflation was reported by 24% of owners as their primary challenge in operating their businesses, which is down one point from July. Additionally, there was a nine-point decrease in the net percentage of owners expecting higher real sales volumes in August.

A separate industry-specific Small Business Optimism report released by NFIB highlighted that supply chain disruptions have impacted 70% of small business owners across various sectors such as construction, manufacturing, retail, and services.

The monthly SBET report by NFIB serves as an important indicator of America's small business economy and is utilized by entities like the Federal Reserve and Congressional leaders.

For further information about Montana's small businesses or updates from NFIB Montana, visit www.nfib.com/montana or follow them on X at @NFIB_MT.